Go-Ahead profit to beat forecasts

Go-Ahead, the company that operates the snow-affected Southeastern rail franchise, thinks it will make more money than expected in the first half, thanks mainly to its trains business.The Newcastle based firm, which also operates the Southern and London Midland rail franchises through its majority owned subsidiary Govia, said overall trading has been "good".Operating profit before exceptional items and amortisation for the six months ending 1 January 2011 is likely to be "slightly" ahead of previous expectations.The company's rail business has performed ahead of expectations in the period, mostly due to procurement savings. That means operating profit before exceptionals is likely to be close to last year's £19.9m. Revenue growth at both Southern and Southeastern is seen up 6%.Bus operations are expected to make slightly more money than last year's interim profit of £34.3m, and things are expected to remain "robust", with second half revenue in London returning to similar levels to last year and modest growth assumed outside London. But the company is cautious and the likelihood that challenging economic conditions will continue in the near term lead it to keep full-year forecasts unchanged.However, commuters in Kent and Sussex served by Southeastern trains are being hit with double-digit percentage fare rises in January. That should help figures in the second half, though Go-Ahead forecasts "modest" returns.Half-year results will be released on 18 February.